asean regional finance companyinvestor.grouplease.international/misc/presn/...dec 11, 2012 · •...

3Q2012 Results Briefing Asean Regional Finance Company

Analyst & Investor Update 11 December 2012

AGENDA

A. I n t r o d u c t i o n

B. B u s i n e s s O v e r v i e w

C. F u t u r e E x p a n s i o n P l a n s

D. F i n a n c i a l R e v i e w

E. Q u e s t i o n s a n d A n sw e r s

DISCLAIMER

T h i s I n v e s t o r P r e s e n t a t i o n h a s b e e n p r e p a r e d b y G r o u p L e a s e P l c f o r i n v e s t o r s , s o l e l y f o r

i n f o r m a t i o n p u r p o s e s .

T h e v i e w s e x p r e s s e d h e r e c o n t a i n s o m e i n f o r m a t i o n d e r i v e d f r o m p u b l i c l y a v a i l a b l e

s o u r c e s t h a t h a v e n o t b e e n i n d e p e n d e n t l y v e r i f i e d .

N o r e p r e s e n t a t i o n o r w a r r a n t y i s m a d e a s t o t h e a c c u r a c y, c o m p l e t e n e s s o r r e l i a b i l i t y o f

t h e i n f o r m a t i o n . A n y f o r w a r d l o o k i n g i n f o r m a t i o n i n t h i s p r e s e n t a t i o n h a s b e e n p r e p a r e d o n

t h e b a s i s o f a n u m b e r o f a s s u m p t i o n s w h i c h m a y p r o v e t o b e i n c o r r e c t .

F i n a n c i a l n u m b e r s i f p r e s e n t e d i n o t h e r c u r r e n c i e s o t h e r t h a n T H B a r e s t r i c t l y f o r

i l l u s t r a t i v e p u r p o s e o n l y a n d b a s e d o n p r e v a i l i n g i n t e r b a n k l e n d i n g e x c h a n g e r a t e a t t h e

t i m e o f p r e s e n t a t i o n .

T h i s p r e s e n t a t i o n s h o u l d n o t b e r e l i e d u p o n a s a r e c o m m e n d a t i o n o r f o r e c a s t b y G r o u p

L e a s e P l c . N o t h i n g i n t h i s r e l e a s e s h o u l d b e c o n s t r u e d a s e i t h e r a n o f f e r t o s e l l o r a

s o l i c i t a t i o n o f a n o f f e r t o b u y o r s e l l s h a r e s i n a n y j u r i s d i c t i o n .

KEY HIGHLIGHTS

E x p a n d i n g d e a l e r s h i p

b a s e i n T h a i l a n d

H i g h u n i t g r o w t h

e x p e c t e d o v e r t h e n e x t 5 y e a r s

C o n v e r s a t i v e A c c o u n t i n g

a n d p r u d e n t r i s k m a n a g e m e n t

I m p r o v i n g F i n a n c i a l

P e r f o r m a n c e

R o b u s t b a l a n c e

s h e e t

• Acqu i red Group Lease Ho ld ings in S ingapore as a base fo r expans ion

• Opened a who l l y -owned subs id ia ry in Cambod ia in March2012

• Wi l l l ook a t po ten t ia l M&A oppor tun i t i es th roughou t ASEAN

• Inc reas ing number o f dea le rs i n Tha i land f rom 100 in 2011 to 250 by 2013

• Wi th in Tha i land , The 100 ,000 un i t s i s expec ted to doub le to 200 ,000 i n th ree years

• Cambod ia i s expec ted to i nc rease to 300 ,000 un i t s w i th in the same per iod

• The a im i s to ach ieve 1 m i l l i on un i t s in f i ve years

• GL emp loy ’s conserva t i ve accoun t ing po l i c ies , w i th 100% p rov is ion ing a f te r 3 months to p reven t i ssues f rom esca la t ing

• Ne t Pro f i t fo r 9M12 has a l ready exceeded 2011 l eve ls

• P ro f i tab i l i t y ra t ios such as ROE and ROA are a t 4 year h ighs

• F inanc ia l f l ex ib i l i t y a l lows GL to expand capac i t y and i nves tments where necessary

• Genera t ing s t rong cash f low f rom opera t ions

E x p a n d i n g t h r o u g h o u t

A S E A N

KEY MILESTONES

1986

1990

2004

2007

2012

Estab l i shed in Tha i land as a au tomob i le h i re pu rchase bus iness by the Luaengrungs i fami l y

New shareho lders acqu i red the bus iness to sh i f t to the moto rcyc le h i re purchase bus iness

GL l i s ted on the S tock Exchange o f Tha i land

APF Group became a new ma jo r shareho lder

Reg is te red cap i ta l i nc reased to THB 570 mi l l i on

Par tners w i th Honda to launch opera t ions in Cambod ia to make GL the f i r s t moto rcyc le leas ing company in Cambod ia

Acqu i res Group Lease Ho ld ings P te L td (S ingapore ) to expand th roughou t ASEAN

AGENDA


B. B u s i n e s s O v e r v i ew




GL provides HP for motorcycles in greater Bangkok & Upcountry. Avg price per bike is Bt. 45,000

Category : Automatic Category : Family

Category : F-Sport Category : Sport

BUSINESS OVERVIEW

H e a d O f f i c e , B a n g k o k

• Bangkok (Headquarter) • Ayutthaya • Chonburi • Rayong • Nakorn Ratchasima • Bowin

Chonburi Branch

Ayutthaya Branch

BUSINESS OVERVIEW GL currently has six branches which they can also cover neighbor provinces:-

Thailand’s motorcycle sales have been growing strong since 2008 and the market is expected

to hit a new record high of 2.2mn units in 2012.

Higher consumer affordability & changes in consumer behaviour also have a role in this

Higher affordability • Higher minimum wage • Good economy

Changing in consumer behaviors • Higher turnover due to new design and technology • The age of rider is lower

Source : Thai land Motorcyc le Hi re Purchase Assoc iat ion

BUSINESS OVERVIEW

Cash Sales in Bangkok Metropolitan Area was 51% in 2011 implying more room

Source : Thai land Motorcyc le Hi re Purchase Assoc iat ion

HP financing in BMA Cash Sale in BMA

BUSINESS OVERVIEW

-

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 9M12

# of new units financed each year

BUSINESS OVERVIEW

The number of new units financed has increased 400% since 4Q11 and over 200% from the same period last year

New units financed from Sept ‘11 to Sept ‘12

BUSINESS OVERVIEW

GL aims to finance 20,000 units per month by 2015

BUSINESS OVERVIEW

Average Monthly Lending Unit

GL aims to expand its number of dealers aggressively by 2013

BUSINESS OVERVIEW

Average Number of Dealer

GL employs conservative accounting methods

Provision for doubtful account

Current Portion< 1 months 1%

Overdue 2-3 months 2%



Overdue more than 12 months 100%

This ensures that GL will deal with any potential NPLs and receivable issues before they become unmanageable

BUSINESS OVERVIEW

AGENDA






WHY EXPAND THROUGHOUT ASEAN?

Thailand’s age demographics is still very appealing for the motorcycle hire purchase

business as the majority of the population is within the age of 20-40 years old

Thailand 2010

Thailand 2025 Thailand 2050

Thailand 1975Thailand 1950

ASEAN HAS VERY ATTRACTIVE DEMOGRAPHIC STRUCTURES

Cambodia, Laos, Vietnam and Indonesia all still have very young populations thus implying strong growth potential for Group Lease

Japan 1990 Thailand 2010 Indonesia 2010

Cambodia 2010 Laos 2010 Vietnam 2010

ASEAN HAS VERY ATTRACTIVE DEMOGRAPHIC STRUCTURES

And each of the countries markets will continue to attractive for the next 40 years

Japan 1990 Indonesia 2050

Cambodia 2040 Laos 2050

Thailand 2020

Vietnam 2040

MARKET CHARACTERISTICS

Indonesia 3r d largest motorcycle market in the world Motorcycle sales have been growing rapidly 2009 5 mi l l ion 2010 7.5 mi l l ion 2011 8 mi l l ion

Vietnam Populat ion 87.8 mi l l ion (2010) GDP 103.5 bi l l ion US$ (2010) GDP per person 1,173 US$ (2010) Urban Populat ion 27.0 mi l l ion (2010)

Cambodia Populat ion 14.1 mi l l ion (2010) GDP 11.6 bi l l ion US$ (2010) GDP per person 813 US$ (2010) Urban Populat ion 3.0 mi l l ion (2010) New Motorcycle Sales in 2011 = 160,000 uni ts.

Vietnam

Cambodia

Indonesia

CAMBODIA IS GL’S FIRST ASEAN EXPANSION

Cambodia GDP

Cambodia GDP per Capita

Cambodia Population

Cambodia is considered by many to be high risk but GL sees the opportunity to capture a young growing market

CAMBODIA IS GL’S FIRST ASEAN EXPANSION

Cambodia 1950 Cambodia 1975 Cambodia 2010

Cambodia 2025 Cambodia 2050

Cambodia has a young demographic market with a strong viability for long term growth

GL will use its recent acquisition in Singapore, Group Lease Holdings, as the main vehicle for expansion throughout ASEAN

• GL acquired Singaporean Group Lease Holdings Pte Ltd (GLH) on 29th March 2012 to be i ts ARFC (ASEAN Regional Finance Company) vehic le

• Provides GL the f lexibi l i ty in tapping mult ip le capi ta l markets in ASEAN for funding

• Growing numbers of populat ion and higher GDP per capi ta

• ASEAN motorcycle market of 15 mi l l ion uni ts per year and is expected to increase to 20ml. Motorbikes

• Aim to increase overseas revenue by 8 t imes

ASEAN Regional Finance Company

(ARFC)

SingaporeEconomic and financial

infrastructure as regional hub

ThailandHighly profitable finance

business Know-How

Japan International deployment know-How and capital

strength

GL HAS ALREADY ESTABLISHED GL FINANCE PLC IN CAMBODIA

• Incorporated on 14 March 2012

• The First and Only Financial Lease Company in Cambodia

• Financial Leasing Business Licensed by NBC on 17 May 2012

• GL Cambodia has signed an exclusive contract with Honda for 7 years to be the first and only f inance company for Honda motorbikes in Cambodia

• GL’s numbers in Cambodia expected to reach about 300,000 units by 2016 given Cambodia’s tremendous growth opportunity

• GL has 11 locations established in Cambodia as of the End of October

• Each location is within a Honda Showroom

• GL expects 3,000 new units financed monthly starting in 2013

GL HAS ALREADY ESTABLISHED GL FINANCE PLC IN CAMBODIA

HONDA SHOWROOM AT MONIVONG

HONDA SHOWROOM AT AIRPORT

HONDA SOK HY

HONDA LY KONG

HONDA CHING SUNG HEY

HONDA VAN SEU HENG

HONDA POK PHALRA

HONDA HENG SAMBO

HONDA CHHAY LY

HONDA CHHOEM NEANG

HONDA CHEA SAMBO

GRAND OPENING AND PRESS CONFERENCE

GLF SUPPORTS FOOTBALL CLINIC

GLF SUPPORTS CAMBODIAN TENNIS

AGENDA




D. F i n a n c i a l R e v i ew


FINANCIAL SUMMARY

Units: THB million 3Q12 2Q12 3Q11 QoQ% YoY% Total sales revenue 262,217 230,249 219,557 13.9% 19.4% Hire purchase interest and installment sales income 220,108 200,625 202,189 9.7% 8.9% Other income 42,109 29,624 17,368 42.1% 142.5% Total Expenses (109,405) (104,504) (111,275) 4.7% -1.7% Service and administrative expenses (71,126) (54,556) (33,569) 30.4% 111.9% Bad debts and doubtful accounts (8,591) (14,799) (41,011) -41.9% -79.1% Loss on disposals of foreclosed assets (29,688) (35,149) (36,695) -15.5% -19.1% EBIT 152,812 125,745 108,282 21.5% 41.1% EBIT Margin 58% 55% 49% Finance cost (16,233) (11,396) (19,243) 42.4% -15.6% EBT 136,579 114,349 89,039 19.4% 53.4% Corporate income tax (30,602) (25,645) (26,700) 19.3% 14.6% Net Profit 105,977 88,704 62,339 19.5% 70.0% NPM 40% 39% 28% EPS 1.54 1.29 1.04 19.3% 47.7%

REVENUE AND NET PROFIT

Revenue

2009 2010 2011 9M12

Net Profit

PROFIT AND LOSSES 3Q2012

# of units per month increased from 2,000 to 5,000

Improved customer management

Increased in line with expansion of dealers Increase in minimum

wage salary +70.0% YoY

KEY FINANCIAL RATIOS

Net D/E

ROE ROA

Net D/E is increasing because of the company’s expansion plans

ROE and ROA are at 4 year highs

QUESTIONS AND ANSWERS

asean regional finance companyinvestor.grouplease.international/misc/presn/...dec 11, 2012 · •...

Documents